Ubtapped business in nigeria

Untapped Businesses In Nigeria (2020)

If setting up a unique business has always been your top priority, venturing into an untapped business opportunity with low competition is the smart move you can make. Why?

This type of business promises a high return on investment – ROI and has little competition. Also, since the Nigerian market is competitive, your dream of being a millionaire or a billionaire will quickly turn to reality if you perch in a business with low participation.

Regarding the untapped business in Nigeria, I’m convinced you’ll have questions. For example, what are some of the untapped business ideas in Nigeria? How can you venture into them? What is the level of difficulty in setting it up? What’s the assumed capital? And lastly, what’s the expected Return on Investment – ROI?

You will be pleased to find answers to all these questions in this article. But wait! How will that be accomplished?

Taking a deep dive into these questions, this article has been sectioned into two parts. The first section analyzes the list of untapped business opportunities in Nigeria. What does that mean? It means businesses people rarely do in Nigeria.

Taking a unique approach, the next subheading explains businesses that haven’t been established in Nigeria or businesses that are already established but still have a lot of unexploited opportunities that you can take advantage of. They are also cheap to start. Undoubtedly, reading this piece will allow you to make an informed decision.

Profitable Business Opportunities in Nigeria

1. Sanitation and Waste Management

photo of waste for recycling

It is estimated that 11 billion tons of waste being collected around the globe generate $140 billion. Nigeria, being a developing country, is a contributor! What does that signify?

Venturing into this business will make you become one of the wealthiest entrepreneurs in Nigeria. How? There are tons of products you can generate from recycled waste. There are three basic approaches to this:

  • Direct waste management. This is the most difficult part where you will have to carry it out yourself.
  • Middle-man waste management. This involves locating organizations that recycle and inform them of your services. Then find individuals that can help you pick up recyclable products and waste.
  • Recycler. As a Recycler, you are the firm yourself.

Assumed Capital to Startup

  • Direct Waste Management: From N1000 upward
  • Middle man Waste Management: N20,000 – 30000
  • Recycler: N20,000,0000 and above.

Return on Investment

  • Direct Waste Management: N150, 000 (Monthly)
  • Middle man Waste Management: N300, 000 (Monthly)
  • Recycler: Tens of Millions Yearly

2. Food Truck and Container Business

Food container business is another hot business idea that is untapped in Nigeria; this business idea will best serve the working-class citizens.

According to Nigerian labor law, a Nigerian must work 45 hours weekly (5 days) i.e., on average, a Nigerian works 9 hours per day. Now to break it down, if work starts around 8 am, a worker will close 5 pm to complete his 9-hour requirement. And also, don’t forget about the crazy traffic in Nigeria, especially if you’re working in Lagos, Abuja, Kano, or even Port Harcourt.

The working white-collar job citizens do not have enough time to prepare their food, and that is where the food container business idea steps in.

To get to work on time, the working class citizens need to wake up on time to prepare, and obviously, they most times skip breakfast. So, all you’ll need to do is to prepare for them a light breakfast like coffee, tea, and some snacks.

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And also in the afternoon, when it’s time for their break, make sure you’ve already prepared lunch for them. You could prepare foods like yam, white or jollof rice, and so on. The key to marketing is to place your truck or container in public places, areas that are crowded, or even in front of a company. One advantage this business idea offers is that a large percent of your rent will be reduced because you occupy less space.

Assumed Capital to Startup

  • New food truck: around N5,450,000
  • Second-hand truck: around N2000,000
  • Miscellaneous: within the range of N100,000-150,000

Return on Investment

  • Monthly: N200,000
  • Yearly: N2,400,000

3. Organic Farming Business.

When you compare Nigeria to other African countries, you will notice that Nigeria is still a babe in the aspect of farming and agriculture. Yes, I know Nigeria is said to be an agrarian state and has a record of leading the world in producing certain crops at some point in time, but Nigeria is still very new to the world of farming in an organized manner.

Out of many untapped businesses in Nigeria; organic farming stands out and it looks like the next big thing in the agricultural industry.

Organic food today is highly demanded worldwide. So as an entrepreneur, you have to play your part by picking your farm tools to get to work and start producing crops, vegetables, milk, and any other daily need you feel people might require. 

And also, the government is willing to aid any entrepreneur who decides to venture into this line of work by giving out grants to them.

Assumed Capital to Startup

  • Around N500,000-1,000,000

Return on Investment  

  • About 70% of investment money

4. Alternative Energy for Homes

Your business will be more successful when it exists to solve a particular problem or meet up to a specific demand. The higher the demand you meet, the more the profit you make.

The power sector in Nigeria was privatized in the year 2005 because the government failed to meet up with its responsibility, and that is to distribute power to the entire Nigerian population. Just like the government, the private sector to which the power sector was handed hasn’t improved the situation.

Based on the statistics gotten from the companies in charge of generating electricity for Nigeria, Nigeria receives 3,851MW of power on average and this isn’t sufficient to power the entire country.

Do not allow the problem of power to border you. You can be the solution to the problem the government and the private sector cannot solve.

There are other ways to supply electricity to people’s homes, and that is where entrepreneurs come in.

Some of those ways are the use of solar panels, wind energy, biomass energy, and so on.

As an entrepreneur, you can take advantage of this problem by establishing a company that specializes in doing any of the following things listed:

  • Solar Panel installation
  • The building of solar panels
  • Selling of solar panel parts
  • Solar panel maintenance

Starting this kind of business will require a large sum of money.

Assumed capital to startup.

  • Around N3,150,000

Returns on investment.

  • Monthly: N555,000
  • Yearly: N6,660,000

5. Website or Domain Flipping

This involves buying and reselling websites. It entails explicitly building a website from scratch and selling it to any interested buyers. Of course, this requires you have basic knowledge of web development. It is a low-cost business.

In 2019, I flipped my old website – and it got me a whooping sum of $250. I could get more if I knew then what I know now. All the money I spent on the website before I flipped it wasn’t even up to $100.

Think about it! Statistics have shown that about 380 sites are being created every minute. Why? Many new businesses are coming up, and they need websites since it’s an integral part of their business.

So, Digital entrepreneurs will always get potential buyers. Being a lucrative business, it’s still an untapped business in Nigeria that only a few individuals have ventured into. How can you become a website flipper?

If you are a website developer, you can develop a website, build it, and then flip it for sale on sites like Freemarket, Flippa, Afternic, and more.

If you aren’t a developer, learn how to create a blog, develop it, and then flip.

You can learn that via YouTube or ask a friend to guide you. After setting it up, put it up for sale.

Assumed Capital:

  • N1000-150,000

Return on Investment:

  • 350,000-1,000,000

6. Employee Training

Training employees for a business organization

More than 50% of graduates have complained that their graduate education never prepared them for the labor market.

This shows that educational institutions have failed to equip students with the right knowledge required to have space in the labor market. As a result, someone needs to train these employees so they can fit in into the market. What are some ideas needed?

In tapping into this business opportunity, you would need to create numerous professional courses that will be a valuable tool for society.

Also, you’d need to seek areas where employees have shortfalls and then create the solution for them. They can be trained on varieties of subjects that give them a voice in the labor market.

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If you don’t have a physical location where all your candidates can meet, you can make sessions available online. This will only cost you little to nothing and the estimated profit you can make is limitless depending on how many courses or sessions you have to sell. The number of people you are selling too is a determining factor of how much you can make.

7. Car Bodywork Business

Many Car users in Nigeria depend on this type of business.

They need their services to repair their damaged cars that result from an accident. Garage bodywork for cars also offers efficient maintenance services. These services include tire rotation and paint retouching.

Often, consumers do not get the satisfaction they crave, but since operators of this service are limited, they have no choice.

True, though, there are lots of difficulties in this career, however, if you have a vast knowledge about car repairs and maintenance, you have many car users waiting for you outside.

If you are interested in a business like this, you would need to learn it for months.

If you are already into it, polish your skill and give consumers top premium services. Find a suitable location, expand your site, and finally, get some little networks too.

But, if you don’t have enough time to learn this for months, it’s okay, you can just be an intern for just 1-2 months and hire people that are already into vehicles bodywork. It’s a win-win situation.

Assumed Capital:

  • N50-100,000 (Excluding Shop Rents and Tools)

Return on Investment:

  • N150,000 Upward

8. Homemade Cosmetics

As a result of the growing numbers of consumers, the demand for this service increases by the day. That even made it to be more lucrative than it used to be in the past.

You may be aware that a lot of small scale businesses are currently into this line of business but you need not be afraid as many of them are doing it wrongly. I am sure there are still a lot of untapped opportunities in this area. And it is quite easy to start.

Research your competitors and target market audience, then brand your products in a way they find so attractive to ignore it.

You can create various pages on popular social networking platforms and reach out to your potential customers to meet you at an agreed location. In fact, you can even market them in different places across the country.

Homemade cosmetics are fun and profitable. However, you will need lots of research and planning to stabilize it when you begin.

Assumed Capital:

  • N5,000-2,000,000 (Excluding Shop Rents and Tools)

Return on Investment:

  • N150,000 Upward

Note: Investing from 500,000 upward will yield 70%( ROI)

9. Money Lending

This untapped business opportunity in Nigeria requires lots of rigorous setups.

There are a lot of willing individuals who want to get free from the shackles of banks that kill with a high-interest rate.

Imagine borrowing N700,000 and paying over 2.5 million as the interest.

Thus, a lot of individuals are dedicated to partner sight lenders that have.

This establishment, with a flexible payment plan involves a lot of regulations and laws that need to be adequately understood before you can officially let the door open for the job.

Additionally, you are required to ascertain proper planning to bring about success. Hence, it will be a failure eventually.

To promote the health of your system, you are required to outline a business vision that will be necessary to implement the infrastructure system.

To get started, you can visit sites like flint loans, where individuals can, in a secured manner, lend cash out to people and then make monthly or annual interest.

Assumed Capital:

  • N70,000-200,000 (for the acquisition of the Money Lender Certificate and the collection of an Invoice)

Return on Investment:

  • N300, 000 above

Read: Lucrative Online Businesses In Nigeria To Make Money (2020 List)

Untapped Business Ideas in Nigeria

Business plan papers and laptop computer

10. Construction Site Catering

If you ask any random individuals, you will get to know that this profitable business idea is simply still untapped. It involves opening a catering business only for construction workers. But is it really worth it?

The recent report from the construction firm shows that construction in the Nigerian construction sector grew by 8% than it did in the past. Isn’t that a great clue that you have enough potential buyers?

You need a mobile catering truck that offers varieties of food like snacks, bread, Moi Moi, breakfast products, drinks, and sandwiches.

If you wish, you can run this business on a part-time or full-time basis based on your schedule. Just get a truck, acquire a license, and start selling your food to your targeted audience.

Assumed Capital:

N10,000-150,000 (Truck renting, cooking utensils)

Return on Investment:

N300, 000 above

11. Massage Business

Requiring a minimal overhead and very low Startup, this inexpensive untapped business idea will get you a decent steady income.

At first, to get a steady stream of customers might take months. Therefore, if you are trying this as a side hustle, you must sustain your present job until you are comfortable with your next decision – either to quit and pay attention to your massage business or run both.

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Self-employed individuals would need to source for their customers first. You will need to pay taxes, handle expenses. The moment you’ve got the right certification, stick to some specific rules, and then you can help your business grow.

Assumed Capital:

N10,000-150,000 

Return on Investment (Monthly)

N250, 000

12. Importation Business

Just like other countries, Nigeria also exports and imports goods. If you’ve got plans to set up an import and export business, you’d be required to verify the products and their targeted destinations to record success. Having access to the targeted products will guarantee you an 80% success rate.

There are several resources on the internet that can guide you on what to do and how to do them. Also, there are digital entrepreneurship coaches that can teach you how importation business works.

One of the prominent ones we have in Nigeria is Toyin Omotoso, Author of LettersFromToyinOmotoso.com. Contact Toyin Omotoso on Facebook

So, acquire good knowledge of how an international market works and the economy. Learn to know the essential requirements and conditions existing in those countries you are planning to import from, and documents to tender. Understanding these will give you a right to look into the business.

Assumed Capital:

N50,000 upward 

Return on Investment (Monthly)

N250, 000

13. Lingerie Business

Especially for ladies, this is a business they can try either in a boutique or operated from home. Why it’s best for ladies is because they understand better what makes a woman feel sexy.

If you look around, this hot business isn’t practiced like other clothing businesses in Nigeria.

The journey will surely be enriching because you will have more consumers and less competition.

PS: I personally love to buy this for my woman, I believe other men would love to too but they hate to go to public stores to get it. Yes, men are shy to get products like that in public.

If you give your business online presence, this business niche can make you a fortune in a few years. 

14. Video Game Business

Many people want a place where they can enjoy playing a variety of games. The number of video games both old and adults purchase is undoubtedly on the high side. The money they spend to acquire video games too is high.

And as such, the country’s video game industry is fast booming. Even though, there are still a lot of areas in this business niche waiting to be exploited. If you do proper research, you will find out what you need to do to make a fortune from this business.

Interestingly, you can carve out a niche here. Just set up a decent place, download necessary games, and purchase the right gaming utilities.

Assumed Capital:

N50,000 – 1,500,000

Return on Investment (Daily)

N30, 000

15. Electric Fencing

Many Nigerians are concerned about securing their families and properties.

With that, they are confident that electric security will be the way out to prevent intruders into their facilities. Currently, out of the 170 million of Nigeria’s population, about 98 million are without access to electricity

And its usage has been widespread even in the face of epileptic power supply in the country. Take for instance, out of about 200 million citizens; there are about 102 million individuals with electricity. Yes! These are your targets.

Electric Fencing has proven to be a handy system used in protecting both offices and homes. This aspect entails the adoption of electrified fences that use a high voltage electric shock to ward off unauthorized entrance into a facility.

To start, you have to be skilled. Learn from a certified firm. Or mobilize experts in the field and start a company yourself.

16. Swimming Pool Construction

Either a large estate or a small estate, a whole lot of people desire to have a pool for swimming. Many folks are interested in basking in the freshness of freshwater right in the comfort of their homes.

And that’s because the presence of a pool in a place has been a signature of luxury and wealth. Since more luxury homes are being built, the need for this has increased. So no doubt swimming pool construction business is still an untapped business in Nigeria.

If you have construction skills, you just need to go for more training, specialize in this field, get needed connections in megacities, and earn referrals when you construct mind-blowing facilities.

Read: Lucrative Online Businesses In Nigeria To Make Money (2020 List)

Conclusion

This isn’t the time to think of business segments that have been overcrowded, which surviving there would be like passing through fire.

This is the time to focus energy and resources on untapped business opportunities and ideas. When you do, you can look forward to having these benefits:

One, you will be able to address the timely needs of the market. And two is profit. The reward every business owner wants to obtain.

Choose any one of the above-listed business opportunities, research more on it, and start doing it. You should come back here to give me a good testimony.

IMPORTANT NOTICE: This article only considered Micro, Small, and Medium Enterprise. Thus, all the assumed and estimated figures for capitals and profits are not guaranteed figures. They just estimate. It could be more or less.

Have you tried any of the above-mentioned businesses before now? Are you still into any of them? Share your experience via the comment box.

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